GBPAUD Dives on Gloomy Outlook

The GBPAUD market has continued a downward retracement after testing the high around the 2.1600 price level. This retracement appears to be driven by speculation surrounding the anticipated tightening of interest rates by the Bank of England (BoE). It is expected that the interest rate will be hiked from 4.00% to 4.25%. Meanwhile, the Australian side of the market has been quiet on fundamental fronts, causing traders to take a bearish stance on this pair.

Key Price Levels

Resistance Levels: 2.0000, 2.1000, 2.1500

Support Levels: 1.9500, 1.9000, 1.8500

GBPAUD Sees a Strong Price Descent

The GBPAUD market has been attempting a recovery, trading above the 2.1000 price level. However, it appears that bulls have been knocked down so severely they cannot regain momentum, as the price ceiling at 2.1000 seems firmly established.

As a result, price action has rebounded sharply downward toward the end of the week. The most recent price candle has brought the pair below the middle line of the Bollinger Bands, indicating a strong bearish sentiment. Furthermore, the Moving Average Convergence Divergence (MACD) indicator lines fall toward the equilibrium level, and the histogram bars form below it. This technical setup suggests intensifying bearish pressure.

GBPAUD Approaches the 2.0000 Mark

On the 4-hour GBPAUD chart, price action continues its steady downward movement. In recent sessions, bearish activity has dominated, as seen in the formation of consecutive bearish candles. As a result, the Bollinger Bands have widened to accommodate the selling pressure, with prices pushing against the lower band.

The MACD indicator also confirms a bearish outlook, with both the histogram and indicator lines trending downward. Therefore, it appears likely that the market may soon test the 2.0000 price level.

Make money without lifting your fingers: Start trading smarter today